Lawyers as Whistleblowers? New York Judge Says No

Can attorneys act as whistleblowers when they suspect their clients are acting illegally?

In New York, a state trial court judge ruled last month that a lawyer who discloses confidential client-information can be precluded from acting as a whistleblower. Moreover, the ruling found the attorney in the case had violated state bar ethics rules.

In the case, David Danon, a former in-house lawyer at Vanguard Group accused the mutual fund of a scheme to systematically undercharge its affiliates and thereby reduce its overall tax liability. Despite filing his claim in a half-dozen venues, including Texas and California, Danon’s status as ...